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SUPPLY RESPONSE IN THE AUSTRALIAN SHEEP INDUSTRY: A CASE FOR DISAGGREGATION AND DYNAMICS *
Author(s) -
Reynolds R.G.,
Gardiner B.
Publication year - 1980
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1980.tb00578.x
Subject(s) - flock , wool , econometric analysis , economics , substitution (logic) , econometric model , agricultural economics , zoology , biology , econometrics , geography , ecology , archaeology , computer science , programming language
Microeconomic capital goods theory was utilised to provide a theoretical framework on which a dynamic econometric model was based. Econometric procedures were then employed in an analysis of sheep producers' decision making regarding the annual supplies of wool, lamb and mutton, and annual changes in the inventory levels of sheep, lambs and ewes maintained for breeding purposes. Estimates show that wool prices provide the long‐run stimulus for increases and decreases in the sheep flock while mutton and lamb prices are responsible for short‐run changes in flock composition. Substitution between sheep and beef cattle is of considerable importance although no significant substitution between sheep and cropping could be found. Seasonal conditions proved to be an important short‐run supply shifter, affecting both numbers and composition of the sheep flock.